The new head of Hewlett-Packard, Leo Apotheker, will earn an annual salary of $1.2 million, plus get a $4 million signing bonus, and entitlements to restricted shares in the company’s stock, according to federal corporate filings.
The Palo Alto, Calif.-based technology company said Apotheker will also be eligible for cash bonuses if the company meets yearly performance goals. That bonus for fiscal year 2011, which beings in November will be at least $2.4 million, or double Apotheker’s base salary, the company said. If certain targets are met, the bonus could grow to as much as five times his annual base salary.
Two months ago, HP’s board removed Chief Executive Officer Mark Hurd over questions about sexual harassment and dubious expense reports. The company was expected to find a replacement from within its own ranks or woo someone from the outside with more experience than Apotheker.
The move to hire Apotheker worried some investors, and the company’s stock fell almost 4 percent Friday amid market uncertainty.
“I want to meet with as many HP people as I can. The same with customers and shareholders,” Apotheker told investors on his first HP conference call with analysts. “Just stay tuned.”
Apotheker, 57, was named CEO of HP last week. Earlier in the year, he lost his job from SAP, a German business software maker. Apotheker is receiving a $4 million signing bonus and $4.6 million relocation allowance.
Directors at HP said Apotheker was their unanimous choice among six candidates qualified to replace Hurd.
“We wanted a strategic thinker with a passion for technology,” said lead independent director Robert Ryan.